Dow Inc. has announced a series of targeted measures to achieve $1 billion in cost savings. These actions are designed to address the ongoing macroeconomic challenges and support the company's long-term growth goals.
The company aims to realize most of these savings annually by reducing direct costs by $500 million to $700 million, primarily through cuts in purchased services and third-party contract labor. Additionally, Dow plans to lower labor costs by reducing its global workforce by approximately 1,500 roles.
Jim Fitterling, Dow's chair and CEO, stated, "While these decisions are difficult, we must continue to take proactive actions to reduce costs while we navigate through this ongoing slower-than-expected macroeconomic recovery." He emphasized that these steps are part of Dow's commitment to aligning spending with current economic conditions while pursuing long-term growth objectives.
Dow will incur a charge of $250 million to $325 million in the first quarter of 2025 related to severance and benefit costs associated with these activities. The implementation costs will be expensed as they occur, ranging from $20 million to $30 million.
As it moves forward with these changes, Dow will engage with local stakeholders in each region and comply with relevant regulations and consultation processes.
Dow is a leading materials science company serving high-growth markets such as packaging, infrastructure, mobility, and consumer applications. It operates manufacturing sites in 30 countries and employs around 36,000 people. In 2024, Dow reported sales of approximately $43 billion.
For further information on this announcement or about Dow's operations, media inquiries can be directed to Rachelle Schikorra at ryschikorra@dow.com or +1 989-513-8598.
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